A historic geopolitical breakthrough and one of the most anticipated stock market debuts in years combined Monday to send U.S. stocks surging across the board. President Donald Trump’s announcement over the weekend that the United States and Iran had reached a peace agreement – including the reopening of the Strait of Hormuz and the lifting of the U.S. naval blockade – gave investors reason to buy broadly, while SpaceX’s blockbuster Nasdaq debut added fuel to an already strong session. By the close, all three major indexes posted substantial gains, with the tech-heavy Nasdaq logging its best single-day performance since late March.
What Moved Markets
The Dow Jones Industrial Average rose 468.77 points, or 0.92%, to close at a record 51,671.03. The S&P 500 gained 122.83 points, or 1.65%, finishing at 7,554.29. The Nasdaq Composite was the clear standout, surging 795.10 points, or 3.07%, to end the session at 26,683.94.
The Iran peace deal was the dominant catalyst. With the Strait of Hormuz – a critical chokepoint for global oil shipments – set to reopen, crude oil futures fell sharply. U.S. crude settled around $80.80 per barrel, down roughly 4.8% on the day. Lower oil prices ease inflationary pressure and reduce the likelihood of additional Federal Reserve rate hikes, a combination that investors welcomed. Treasury yields pulled back as rate-hike expectations cooled, providing an additional tailwind for equities, especially rate-sensitive growth stocks.
The SpaceX IPO was the other major story. The aerospace and satellite company, run by Elon Musk, had priced its shares at $135 and opened higher on Friday. By Monday, the momentum was still building. The energy, communications, and consumer staples sectors lagged, while technology, consumer discretionary, and industrials led the advance.
Notable Movers
SpaceX (SPCX) extended Friday’s historic debut with another strong session, building on a roughly 19% gain in its first day of trading. Shares crossed above $161, pushing the company’s market capitalization well above $2 trillion and cementing it as one of the largest publicly traded companies in the United States after just two sessions.
AXT Inc. (AXTI) was among the day’s top percentage gainers, climbing nearly 15%, while Collective Mining (CNL) added around 11.5%. Both moves came amid broader enthusiasm for smaller companies benefiting from the risk-on environment.
Seagate Technology (STX) rose roughly 9%, benefiting from a combination of sector rotation into technology and data storage names as investors positioned for continued AI infrastructure spending.
3M (MMM) was the top performer among Dow components, gaining 3.70% to $148.62. The industrial conglomerate has been recovering steadily, and Monday’s move reflected renewed optimism around infrastructure and manufacturing activity.
On the downside, Fox Corp. (FOX) shed nearly 18%, making it one of the steepest single-day drops in the broader market. IBM (IBM) was the weakest Dow component, falling 2.42% to $213.40, and Home Depot (HD) slipped 2.14% to $303.85 as investors rotated away from defensive consumer names.
Looking Ahead
With the Iran deal now official and SpaceX’s debut behind us, investors will shift their attention to incoming economic data. The University of Michigan’s preliminary Consumer Sentiment reading for June is expected later this week, with economists forecasting a slight improvement to 46.1 from May’s 44.8 – though sentiment remains historically subdued. Markets will also be watching oil prices closely for any signs of volatility as the Strait of Hormuz reopens and global supply adjusts. If crude continues to drift lower, it could extend the current rally by keeping inflation expectations in check. Any surprises on the Fed commentary front – or fresh geopolitical developments – could quickly shift the narrative. For now, Monday’s session offered a reminder of just how fast sentiment can turn when big macro risks get resolved.